The Central Bank of the Russian Federation Payment and Settlement PSS Systems Analysis and Statistics No. 41 The National Payment System in 2012 2013 © The Central Bank of the Russian Federation, 2007 107016 Moscow, Neglinnaya St., 12 Prepared by the Bank of Russia National Payment System Department E-mail: [email protected] The survey was prepared for print by the Periodicals Division of the Bank of Russia Press Service The survey is available on the Bank of Russia website at: http://www.cbr.ru THE NATIONAL PAYMENT SYSTEM IN 2012 ANALYSIS AND STATISTICS – No. 41. 2013 Contents INTRODUCTION .............................................................................................................................7 CHAPTER I. PAYMENT SYSTEMS .....................................................................................................9 I.1. Payment systems registered by the Bank of Russia ............................................................10 Box 1. Payment systems’ importance criteria ........................................................10 Box 2. The National Settlement Depository ............................................................12 I.2. The Bank of Russia Payment System ................................................................................19 I.2.1. Functionality and services provided by the Bank of Russia .........................................19 I.2.2. Interaction with the Federal Treasury and other federal executive bodies ....................23 I.2.3. Quantitative and qualitative characteristics of the BRPS operation .............................25 CHAPTER II. FUNDS TRANSFER OPERATORS ................................................................................29 II.1. Payment infrastructure of funds transfer operators ...........................................................30 Box 3. Prospects for the development of the global mobile payments and mobile commerce market ...............................................................................................35 II.2. Payment instruments ......................................................................................................36 Box 4. The social costs of payment instruments .....................................................37 II.2.1. Credit transfers .....................................................................................................38 Box 5. Fees charged by credit institutions from individuals for money transfers to pay for goods (works, services) ........................................................................41 II.2.2. Direct debits .........................................................................................................46 II.2.3. Payment cards ......................................................................................................48 Box 6. Merchant acquiring fees ............................................................................50 Box 7. Mobile POS experience: expansion prospects, efficiency, safety ..................53 Box 8. The Bank of Russia activities in countering unauthorized operations ..............57 II.2.4. Cheques ...............................................................................................................59 II.2.5. Bank orders ..........................................................................................................59 II.3. Methods of forwarding payments to credit institutions .......................................................60 II.4. Devices of credit institutions used in effecting payments ....................................................64 Box 9. Prospects for NFC technology development in Russia ..................................67 II.5. Cash means of payment ..................................................................................................68 CHAPTER III. THE RUSSIAN POST .................................................................................................71 CHAPTER IV. BANK PAYMENT AGENTS AND PAYMENT AGENTS .....................................................75 CHAPTER V. POST-TRADE FINANCIAL MARKET INFRASTRUCTURE ...............................................79 V.1. Major changes in 2012 ...................................................................................................80 V.2. Clearing and settlement indicators ...................................................................................81 V.2.1. Clearing ..............................................................................................................81 V.2.2. Settlements ..........................................................................................................81 V.2.3. Quantitative indicators of post-trade infrastructure functioning .................................82 Box 10. Settlements in central bank money ...........................................................83 ANNEX ........................................................................................................................................85 Payment services provided by credit institutions by region .......................................................87 5 ANALYSIS AND STATISTICS – No. 41. 2013 ANALYSIS AND STATISTICS – No. 41. 2013 6 INTRODUCTION In recent years, the Russian payment services market, which is developing in the framework of the global transition to a new model of relations between suppliers and consumers, has experienced significant chang- es. Such important factors determining current trends and specifics of its development include an active pen- etration of information and communications technologies and mobile communication means into the every- day life, higher mobility of the population leading to growing demand for retail payment services, as well as the continued globalization of financial markets. The above-mentioned factors influence the nature of preferences and behavioral specifics of modern con- sumers of payment services, first of all in the retail segment. Requirements for the characteristics and quality of payment services have increased amid a wide use of mobile communication means by population, grow- ing financial literacy of consumers and demand for payment services. Providers are expected to ensure that their customers have a remote (mobile) access to services at any time and to make funds transfers with a maximum speed through secured payment information transmission channels. It is important for corporate customers, large holding companies, vertically integrated business entities to have a possibility of using payment services to optimize cash flows and incoming customer payments, as well as to manage their financial assets efficiently. Within the context of the Russian financial market development and its integration with the international financial market there increases priority of clearing and payment infrastructure improvements which ensure settlements on transactions with securities and other financial assets at minimum risk for investors. The specifics of the current development stage of international and Russian payment services markets im- pact government payments. The Government is a major participant of the payment services market, funds recipient and originator. The organizational and technological modernization of the government payment sys- tem, and an improvement of payment services are an important factor of optimizing budget flows and en- hancing the efficiency of budget funds management. Modern payment services market characteristics, new requirements for the quality and technological com- ponent of payment services involve a larger range of institutions that ensure payment transactions, includ- ing those specializing in technological support, as well as a spectrum of financial innovations. This promotes competition among payment services providers and spur them to meet the needs of consumers demand- ing high quality services. Along with that an integration of market participants is observed. Organizations join their effort to enhance the efficiency of their activities and satisfy consumer needs. In particular, banks closely cooperate with mobile operators for providing remote banking services to their customers, outsource the services of processors, etc. Such interaction contributes to a fast and sufficiently safe provision of ser- vices at all funds transfer stages. The Russian market of payment services shares the global trend of providers’ specialization in certain types of activities or in certain segments of the market which allows them to control costs more effectively and use the advantages of specialization for business expansion. The current development of the payment sphere is covered by Russian legislation. The Federal Law No. 161-FZ of June 27, 2011, “On the National Payment System” (hereinafter referred to as the Federal Law No. 161-FZ) has started to shape a new configuration of the payment landscape which generally complies with the principles of organizing the activities of national payment system agents practiced in the world. In Russia, the national payment system is based on a banking model where credit institutions are the main pro- viders of payment services. This does not exclude a possibility of introducing non-bank organizations into the structure of payment systems. These organizations function as payment system operators, as well as pay- ment infrastructure service operators. In 2012, important steps were made in designing and developing a new form of payment services, funds transfers within payment